NEW YORK CITY—The U.S. Department of Justice submitted a Statement of Interest in regard to the antidumping investigation of Mattresses from Cambodia, China, Indonesia, Malaysia, Serbia, Thailand, Turkey, and Vietnam, Inv. Nos. 701-TA-645 and 731-TA-1495-1501.
The petition was filed March 31, 2020 with the International Trade Commission by a group of U.S. corporations including Brooklyn Bedding, Corsicana Mattress Company, Elite Comfort Solutions, FXI Inc., Innocor Inc., Kolcraft Enterprises Inc., Leggett & Platt Incorporated, and others. These petitioners are suppliers and producers for major mattress brands such as Tempur-Pedic, Serta, Simmons, Sealy, Casper, Tuft & Needle, and others.
The petition aims to bar imported mattresses by imposing insurmountable tariffs up to 989 percent. Seven countries, Vietnam, Thailand, Turkey, Serbia, Malaysia, Indonesia, and Cambodia, manufacture mattresses that make up a small but critical 22 percent of the U.S. industry.
The American Mattress Alliance (AMA) was created in response to the petition and is made up of furniture and bedding powerhouses like City Furniture, American Furniture Warehouse, El Dorado Furniture, Maven, Classic Brands, Mattress Depot, and RC Willey. The AMA is certain no dumping is occurring and protests the timing of the petition, filed during an economic crisis and worldwide pandemic. The Department of Justice submitted a similar statement of concern to the International Trade Commission.
The statement says, “The Department urges the International Trade Commission (“the Commission”) to consider the competitive effects of any action particularly in light of the ongoing national emergency related to Coronavirus Disease 2019 (“COVID-19”) in evaluating allegations of material injury in the domestic market and deciding how to remedy any such injury.”
The Antitrust Division of the U.S. Department of Justice “enforces the federal antitrust laws and promotes competition and thereby consumer welfare.” In the statement, the Department of Justice says:
Competition is “the heart of our national economic policy.” Standard Oil Co. v. FTC, 340 U.S. 231, 248 (1951). And vigorous competition—from foreign and domestic sources—provides consumers significant benefits, which often includes lower prices. Cf. Pac. Bell Tel. Co. v. Linkline Commc’ns, Inc., 555 U.S. 438, 451 (2009)…Competition also provides consumers other benefits like higher quality goods and better access to those goods.
According to the statement, “promoting competition that provides consumers with better access to mattresses at competitive prices may support the health and safety of millions of Americans.”
The Justice Department concludes by urging the Commission to consider the current atmosphere when making any assessments.
The Department respectfully requests that the Commission take the competitive effects of the ongoing pandemic and its likely aftermath—including potential effects on mattress prices for hospitals and other consumers and whether domestic supply can meet current demand—into account when assessing the extent to which domestic industry may be harmed by the conduct alleged in this case.
It is extremely rare for the Department of Justice to weigh in on a trade remedy proceeding. According to Eric Emerson, Chair of the International Trade & Investment Group at Steptoe & Johnson LLP, “In my nearly 30-year career, I’ve never seen the Department of Justice weigh in before on a trade remedy investigation. Its decision to speak up now demonstrates just how ill-timed and harmful this petition is.”
The full statement is available here, on the American Mattress Alliance website.
About American Mattress Alliance
The American Mattress Alliance exists to provide high-quality products to American consumers with an emphasis on innovation and accessibility. Members include City Furniture, American Furniture Warehouse, El Dorado Furniture, Malouf, Classic Brands, Mattress Depot, RC Willey, Mantua, BedTech, Zinus USA, Maven, Mlily USA, and others. The American Mattress Alliance was created in response to an antidumping petition filed on March 31, 2020. Learn more at americanmattressalliance.org.
